Michael Saylor’s MicroStrategy plunges on New Year’s Eve

Core Insights - Michael Saylor's firm, Strategy, holds a record 672,497 BTC valued at approximately $59 billion, making it the largest Bitcoin treasury globally [1] - The company's stock has faced significant declines, ending the year on a low note [1] Group 1: Company Performance - For most of 2025, Strategy experienced stable performance, but faced challenges in the last months due to potential delisting risks from the MSCI USA Index [2] - The market net asset value (mNAV) of Strategy approached 1, indicating that the equity value aligns closely with the underlying Bitcoin holdings, resulting in no market premium [3] - To address this, Strategy established a cash reserve of $1.44 billion on December 1 to support dividend payments and service debt obligations [3] Group 2: Financial Strategy - Strategy aims to maintain a cash reserve sufficient to cover at least 12 months of dividends, with plans to extend this to 24 months or more to manage Bitcoin's volatility [4] - The company increased its U.S. dollar reserve by $747.8 million, funded by the sale of its MSTR common stock, bringing the total USD reserve to $2.19 billion as of December 21 [5][4] - The company may adjust its cash reserve based on market conditions and liquidity needs [5] Group 3: Stock Performance - On December 31, MSTR stock fell to $153.26, marking a 50% drop over the last three months and underperforming compared to Bitcoin ETFs [6] - Over the past six months, the stock has seen a sharper decline of 62.19%, primarily due to share dilution from aggressive Bitcoin purchases [6]